WELLNEO SUGAR Co. Ltd. (2117) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Chubushiryo Co., Ltd.

Marubeni Corp.

WELLNEO SUGAR Co. Ltd.

Mitsui DM Sugar Holdings Co., Ltd.

J-Oil Mills, Inc.

Yukiguni Maitake Co., Ltd.

Kadoya Sesame Mills Inc.

Showa Sangyo Co., Ltd.

Hokuto Corp.

Nichirei Corp.

Nisshin Seifun Group, Inc.

Why is WELLNEO SUGAR Co. Ltd. ?

Poor Management Efficiency with a low ROE of 4.56%

The company has been able to generate a Return on Equity (avg) of 4.56% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 21.55% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 4.56% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate 21.55% of over the last 5 years

Flat results in Mar 26

INTEREST(HY) At JPY 86 MM has Grown at 100%
PRE-TAX PROFIT(Q) At JPY 1,101 MM has Fallen at -54.59%
NET PROFIT(Q) At JPY 513 MM has Fallen at -66.49%

With ROE of 8.05%, it has a very attractive valuation with a 1.10 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 16.98%, its profits have risen by 1.2% ; the PEG ratio of the company is 1.7

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to WELLNEO SUGAR Co. Ltd. should be less than 10%
Overall Portfolio exposure to Other Agricultural Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Agricultural Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is WELLNEO SUGAR Co. Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

WELLNEO SUGAR Co. Ltd.

16.98%

1.01

16.41%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.76%

EBIT Growth (5y)

21.55%

EBIT to Interest (avg)

57.38

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

1.17

Tax Ratio

31.46%

Dividend Payout Ratio

60.14%

Pledged Shares

Institutional Holding

ROCE (avg)

8.26%

ROE (avg)

4.56%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.10

EV to EBIT

8.36

EV to EBITDA

6.72

EV to Capital Employed

1.10

EV to Sales

0.78

PEG Ratio

1.68

Dividend Yield

ROCE (Latest)

13.13%

ROE (Latest)

8.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 10,764 MM

ROCE(HY)

Highest at 8.62%

RAW MATERIAL COST(Y)

Fallen by -22.86% (YoY

DIVIDEND PER SHARE(HY)

Highest at JPY 12.7

-15What is not working for the Company

INTEREST(HY)

At JPY 86 MM has Grown at 100%

PRE-TAX PROFIT(Q)

At JPY 1,101 MM has Fallen at -54.59%

NET PROFIT(Q)

At JPY 513 MM has Fallen at -66.49%

NET SALES(Q)

At JPY 25,394 MM has Fallen at -7.44%

Here's what is working for WELLNEO SUGAR Co. Ltd.

Operating Cash Flow

Highest at JPY 10,764 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Dividend per share

Highest at JPY 12.7

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -22.86% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for WELLNEO SUGAR Co. Ltd.

Interest

At JPY 86 MM has Grown at 100%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 1,101 MM has Fallen at -54.59%

over average net sales of the previous four periods of JPY 2,424.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 513 MM has Fallen at -66.49%

over average net sales of the previous four periods of JPY 1,530.75 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

At JPY 25,394 MM has Fallen at -7.44%

over average net sales of the previous four periods of JPY 27,436.25 MM

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)